Australian market flat ahead of tariff decisions

The Australian share market ended Tuesday largely unchanged, with the S&P/ASX 200 Index dipping slightly by 1.2 points to 8541.1 as investors waited on developments in US trade negotiations. Financial markets remained cautious after US Treasury Secretary Scott Bessent warned tariffs could revert to earlier levels if deals aren’t made by the July 9 deadline. Canada’s suspension of its digital services tax and the European Union’s openness to a universal tariff highlight the rising urgency. The local technology sector took cues from the strong Nasdaq performance, with Xero Limited (ASX: XRO), Life360 Inc (ASX: 360), and Appen Limited (ASX: APX) all posting gains.

Real estate gains, HMC Capital slumps

Real estate stocks were lifted by rate-cut expectations ahead of the Reserve Bank of Australia’s upcoming meeting, with Scentre Group (ASX: SCG), GPT Group (ASX: GPT), and Stockland Corporation Limited (ASX: SGP) all climbing. Meanwhile, Commonwealth Bank of Australia (ASX: CBA) dragged the index lower with a 1.2 per cent drop, despite other banks such as Australia and New Zealand Banking Group Limited (ASX: ANZ) and National Australia Bank Limited (ASX: NAB) posting gains. In corporate news, HMC Capital Limited (ASX: HMC) plunged 17.3 per cent after scrapping its renewable energy strategy, while Insignia Financial Ltd (ASX: IFL) jumped 5.2 per cent following interest from private equity firm CC Capital. Biotech stocks were also active, with Tetratherix Limited (ASX: TTX) surging 12.3 per cent and Mesoblast Limited (ASX: MSB) gaining 11.2 per cent on positive FDA developments.

Global markets mixed as trade and budget dominate

US markets had a mixed session following the Senate’s approval of President Trump’s budget bill. The S&P 500 Index and the Nasdaq Composite Indexslipped 0.1 per cent and 0.8 per cent respectively, while the Dow Jones Industrial Average rose by 400 points, buoyed by strong gains in UnitedHealth Group Incorporated (NYSE: UNH) and Amgen Inc. (NASDAQ: AMGN). Tech stocks lagged, notably Tesla Inc. (NASDAQ: TSLA), which fell 5.3 per cent after President Trump escalated tensions with CEO Elon Musk. US Federal Reserve Chair Jerome Powell maintained a cautious stance on interest rates, citing tariff-related inflation concerns, while stronger-than-expected May job openings supported a patient monetary approach.